Europa Oil & Gas Regulatory News (EOG)

26 Oct 2009 06:00

HYKEHAM UPDATE

The Directors of Europa Oil & Gas (Holdings) plc are pleased to announce the mobilisation of BDF Rig 28 to drill the main section of the Hykeham-1 exploration well, situated some 5km southwest of Lincoln. The agreed date for mobilising to the site is November 9th and the well is expected to be completed by early December.

The Hykeham prospect is a robust four-way dip-closed structure at Namurian Basal Sandstone level, the reservoir in the nearby Whisby Oilfield where Europa has a producing interest. Additional potential exists in the overlying Westphalian channel sands play, demonstrated by the thick Loxley Edge oil pay in Whisby-4 and this will also be tested by the Hykeham-1 well.

Europa will drill this well with its full 75% equity following Valhalla's decision not to exercise their option to increase their working interest to 50%.

Paul Barrett, Managing Director of Europa said "The opportunity has arisen to drill Hykeham with BDF28 earlier than expected. This is the lowest risk of the prospects in our portfolio and as such we are comfortable proceeding with a 75% working interest. Success will translate to a significant increase in group reserves and go straight to the bottom line in terms of production revenues. We look forward to drilling the well and announcing the results in time for Christmas."

For further information, please contact:

Paul Barrett Europa Oil & Gas +44 1235 553 266Jonathan Wright Seymour Pierce +44 20 7107 8000